Costs and contract terms are currently being reviewed on the maintenance and upkeep of a health PFI job at Queen’s Hospital in Romford.

Academy contracts have also seen their terms reviewed and the Treasury is believed to now be looking at rolling-out the programme across school PFI jobs.

Last week’s James review into school building said that an early priority should be ways of cutting more costs from current Building Schools for the Future and academy projects.

The James review started the schools cost-cutting ball rolling with future recommendations and industry sources believe the next step is a review of existing contracts to reduce prices during the construction and maintenance phases.

One contractor told the Enquirer: “You can see where this is all heading.

“Contractors in other sectors have already been called-in to renegotiate their deals and it seems that schools will be the next one to be hit.”